Commitment of 8,000 metric tonnes of lithium carbonate per year worth an estimated $1.5 billion over 10 years<\/p>\n
LEWISVILLE, Ark. (August 31, 2026) \u2013 Smackover Lithium, a partnership between Standard Lithium Ltd. (\u201cStandard Lithium\u201d or the \u201cCompany\u201d) (NYSE.A: SLI) (TSXV: SLI) and Equinor ASA, through their respective subsidiaries, announced the signing of its second commercial offtake agreement (the \u201cAgreement\u201d) for the South West Arkansas Project (\u201cSWA Project\u201d or the \u201cProject\u201d) with LG Energy Solution. \u00a0LG Energy Solution is a leading global manufacturer of lithium-ion batteries for diverse applications including energy storage systems and electric vehicles.<\/p>\n
Under the terms of this binding take-or-pay offtake Agreement, the SWA Project will supply LG Energy Solution with 8,000 metric tonnes per year of battery-quality lithium carbonate worth an estimated $1.5 billion over a 10-year period following the start of commercial production.\u00a0 Pricing and other key commercial terms are subject to confidentiality but are structured to support anticipated financing for the Project.<\/p>\n
David Park, Chief Executive Officer of Standard Lithium stated, \u201cWe are excited to be entering into this Agreement with LG Energy Solution, one of the world\u2019s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments.\u00a0 The Agreement further anchors our customer offtake portfolio, complementing the contract with Trafigura we announced in March of this year, and is another major milestone in the development of the SWA Project. \u00a0We have now secured a vast majority of the offtake agreements needed to move forward with our Project financing plans and a Final Investment Decision.\u00a0 We expect this to be the beginning of a long and mutually beneficial partnership whereby we will provide LG Energy Solution with a long-term supply of U.S.-based and sustainably produced battery-quality lithium carbonate.\u201d<\/p>\n
\u201cWe are pleased to begin this partnership with Smackover Lithium and the Agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,\u201d said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. \u201cBy bringing both battery production and sourcing to the U.S., we will deliver competitive and sustainable products to our customers driving the global energy storage and EV markets.\u201d<\/p>\n
“Arkansas sits at the heart of America’s lithium boom, and we are ready to be a center not just of extraction, but of the refining and manufacturing that comes after it. This agreement shows that our industry is moving fast and that some of the largest companies in the world are looking to the Natural State,” said Governor Sarah Huckabee Sanders. “Lithium is an economic opportunity for our state, which is why my administration has cut taxes, funded the training that puts South Arkansans into these jobs, and given this industry the regulatory certainty it needs to build here. But it’s also a national security issue, and I’m glad Arkansas can help replace Chinese supply chains with our own, built right here in Arkansas.\u201d<\/p>\n
\u201cSmackover Lithium has taken a significant step forward by signing an offtake agreement with LG Energy Solution, positioning itself for continued success in the lithium sector,\u201d said Arkansas Secretary of Commerce Hugh McDonald. \u201cThis agreement solidifies the importance of Smackover Lithium\u2019s South West Arkansas Project, and it will help establish southwestern Arkansas as a key hub for lithium carbonate and other lithium products. Congratulations to Smackover Lithium, Standard Lithium, Equinor, and LG Energy Solution on this exciting milestone that has the potential to create significant opportunities in Arkansas.\u201d<\/p>\n
The SWA Project is seeking customer offtake agreements totalling roughly 80% of the 22,500 metric tonnes of annual nameplate lithium carbonate capacity for its initial phase.\u00a0 Combining this Agreement with the previously announced Trafigura offtake agreement for 8,000 metric tonnes per year over 10 years means that roughly 90% of the total targeted offtake volume has now been committed.\u00a0<\/p>\n
The partnership remains in advanced discussions with several prospective customers and aims to conclude the offtake process shortly with the expectation of signing one additional smaller agreement.<\/p>\n
The customer offtake process is being run in conjunction with the SWA Project financing process and is critical to supporting the contemplated debt size, duration and structure.\u00a0 Smackover Lithium provided a financing update on <\/a>December 9th, 2025 <\/a>highlighting indications of interest for over $1 billion in Project debt from three major Export Credit Agencies (\u201cECAs\u201d).\u00a0 The due diligence and other customary processes by those ECAs in furtherance of the Project financing are well underway.\u00a0 The partnership is targeting a Final Investment Decision this year.\u00a0 Construction is planned to begin promptly following FID, enabling first commercial production of battery-quality lithium carbonate in 2029.<\/p>\n Qualified Person<\/p>\n All scientific and technical disclosure in this news release was reviewed and approved by Mr. Stephen Ross, P.Geo., British Columbia, Vice President of Resource Development for Standard Lithium and a Qualified Person for purposes of, and as that term is defined in, National Instrument 43-101 \u2013 Standards of Disclosure for Mineral Projects (\u201cNI 43-101\u201d). \u00a0Mr. Ross is not independent of the Company.<\/p>\n Department of Energy Acknowledgement and Disclaimer<\/p>\n This material is based upon work supported by the U.S. Department of Energy’s Office of Critical Minerals and Energy Innovation under award Number DE-MS0000099.\u00a0 The views expressed herein do not necessarily represent the views of the U.S. Department of Energy or the United States Government.<\/p>\n About Smackover Lithium<\/p>\n Smackover Lithium is a partnership between Standard Lithium and Equinor, through subsidiaries of Equinor ASA.\u00a0 Formed in May 2024, Smackover Lithium is developing multiple direct lithium extraction (\u201cDLE\u201d) projects in Southwest Arkansas and East Texas.\u00a0 Standard Lithium owns a 55% interest and Equinor holds the remaining 45% interest in the projects, with Standard Lithium maintaining operatorship.<\/p>\n About Standard Lithium Ltd.<\/p>\n Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. \u00a0The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. \u00a0Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated DLE and purification process. \u00a0The Company\u2019s flagship projects are in the Smackover Formation, an attractive lithium brine asset, focused in Arkansas and Texas. \u00a0In partnership with global energy leader Equinor, Standard Lithium is advancing the SWA Project, a greenfield project located in southern Arkansas, and actively advancing a promising lithium brine resource position in East Texas, including the highest known lithium brine grade project in North America, the Franklin project.<\/p>\n Standard Lithium trades on both the TSX Venture Exchange (\u201cTSXV\u201d) and the NYSE American under the symbol \u201cSLI\u201d. \u00a0Visit the Company\u2019s website at www.standardlithium.com<\/a> for more information.<\/p>\n About Equinor<\/p>\n Equinor is an international energy company committed to long-term value creation in a low-carbon future.\u00a0 Equinor\u2019s portfolio of projects encompasses oil and gas, renewables, and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and has offices in more than 20 countries worldwide.\u00a0 Equinor\u2019s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions, and battery storage projects.<\/p>\n For more information on Equinor in the U.S., please visit: Equinor in the US –<\/a><\/p>\n Equinor<\/a>.<\/p>\n Investor Inquiries<\/p>\n Daniel Rosen<\/p>\n +1 604 409 8154<\/p>\n